Food & Beverage - Specialty Tax Advisors

The Food and Beverage sector involves heavy investment in innovation and R&D, sustainability and environmental goals, manufacturing and processing investment, and international export, all areas that are candidates for tax incentives.

Ideal Candidates:

Food processors and manufacturers
Wineries, breweries, and distilleries
Restaurant and hospitality groups
Agribusinesses with food production arms
Exporters of US-made food products

Here’s an overview of how Food and Beverage companies can benefit.

Research & Development (R&D) Tax Credit

Food & beverage companies often qualify for R&D credits for:

Developing new or improved recipes, formulas, and packaging
Testing shelf life, taste, and nutritional content
Scaling production processes and improving automation
Creating allergen-free, plant-based, or functional foods

Benefit: Up to 10% of qualified expenses as a federal tax credit—often covering wages, ingredients used in testing, and contract research.

Cost Segregation

Restaurants, breweries, wineries, manufacturing plants, equipment and cold storage facilities can:

Accelerate depreciation on kitchen equipment, ventilation, lighting, flooring, and specialty plumbing/electrical systems

Benefit: Front-loads deductions and increases cash flow for newly built, acquired, or renovated properties.

45L Tax Credit

If a food or beverage company develops workforce housing for employees (common in rural or agricultural settings):

Up to $5,000 per unit for energy-efficient homes certified under ENERGY STAR or DOE Zero Energy Ready standards

Benefit: Direct tax credits to offset construction costs.

What Services are Included?

179D Tax Deduction

For large production or distribution facilities:

Deduction of up to $5.00 per square foot for efficient lighting, HVAC, and building envelopes
Often available to both owners and designers (if working on government/co-op owned facilities)

Benefit: Immediate deductions for sustainable facility upgrades.

IC-DISC (Interest Charge – Domestic International Sales Corporation)

Export Tax Incentive for food and beverage producers/exporters:

Allows profits from exported US-made goods (e.g., wine, cheese, packaged foods) to be taxed at qualified dividend rates instead of ordinary income

Benefit: 10–15% permanent federal tax savings on export income.

Section 263A (Uniform Capitalization Rules) & Fixed Asset Reviews

Applicable to:

Restaurants and manufacturers with capitalized inventory or facilities
Reviews asset ledgers and identifies expensable costs under IRS guidelines

Benefit: Retroactive write-offs and current year deductions that reduce taxable income.

Form 3115

A Form 3115 - Application for Change in Accounting Method, allows businesses to request approval from the IRS to change their accounting method. This form might be required when making changes to claim various tax credits.

Changing Depreciation Method
Inventory Method
Accounting for Repairs vs. Capital Improvements

Benefit: Tax relief through audit protection, improved financial reporting accuracy, potential tax benefits, and compliance with IRS Regulations.

Payroll Tax Reduction Strategy

Companies with W2 employees will qualify for this tax credit program.

Proven ROI with significant Payroll Tax savings recognized on first payroll cycle
Eligible employees see an increase in net take-home pay
Zero upfront or out-of-pocket cost to employer or employee
Attract and retain top talent
Audit compliance

Benefits: Employer FICA Tax Savings is $56.80 per month or $681.60 per year per eligible employee. Employee FICA/State/Federal Tax Savings includes an approximate 3-4% increase in monthly net take-home pay.